Stocks Are Down Again (SPX, SPY, DIA, DJI, QQQ, TLT, GLD)

"So far the equity market sell-off has been concentrated in the U.S., with risk-correlated assets elsewhere doing relatively well," says Steven Englander, global head of G10 FX strategy at Citi.

"Now there are signals that USA equity risk off is becoming broader risk off, although the signals are still tentative. In particular, the U.S. equity sell-off, which was blown off initially by most equity markets, is beginning to spread both to EM and G10."

Nearly all European indices closed down more than 1%. Spain's IBEX 35 was the worst performer there, finishing the week 1.5% below Thursday's closing level.

The yield on the 10-year U.S. Treasury note is at 2.62%, down about three basis points from yesterday and near the bottom of the range in which it has been trading since November. The U.S. dollar is little changed against the Japanese yen and the euro.

"As well, we are seeing a bit of buyer’s regret on Greek bonds and some widening of spreads in other euro zone peripherals, basically unwinding about two weeks' gains," says Englander.

"While these are still straws in the wind, if we enter a broad risk-off environment, the squeeze on recently-bought high-beta assets will be intense."

The charts below show movements in various markets. Across the top, from left to right, are S&P 500 futures, the U.S. dollar-Japanese yen exchange rate, and the euro-U.S. dollar exchange rate. Across the bottom are gold futures, five-year U.S. Treasury note futures, and December 2015 eurodollar futures.

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